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Financial Resources for Caregivers
Research shows that family caregivers spend an average of 26% of their income on caregiving activities every year. This translates to roughly $7,242 annually! For working Caregivers, it can be as high as $10,000 per year when factoring in lost wages and time off from work. Our Caregivers tell us their expenses include housing, food, transportation, healthcare, medical supplies, and professional care services. These added expenses significantly impact their personal finances.
In this issue, we are focusing on financial resources that are available to Caregivers. Thank you for all that you do as a caregiver. If you need to connect with me, you can call me at 251-445-3890 or email me at cboyington@sarpc.org.
Take care,
Christina Boyington, LICSW
Alabama Cares Coordinator
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Existing Tax Credits to Offset Costs of Care
There is some good news...Federal tax credits and deductions can apply directly or indirectly to caregiving costs. Tax deductions lowers your taxable income and tax credits directly reduces your tax bill. Here are some highlights of ways family caregivers may be able to reduce their tax burden. More details can be found in the link provided to the AARP tax relief article.
Tax Credit for “Other Dependents”
The Credit for Other Dependents allows taxpayers to claim up to $500 as a nonrefundable Credit for Other Dependents, including parents in your care. The IRS allows family caregivers to claim individuals who can't take care of themselves and are related by adoption, blood or marriage — and even some friends — as other dependents on their federal tax return. There are some specific qualifications you will have to meet.
Head of Household Deduction
If you are a single taxpayer or married but living apart from your spouse, adding a dependent relative who lives with you could bump you up to head of household. The change in status raises your standard deduction for the 2024 tax year to $21,900, up from $14,600 if you are single or married but filing separately. A parent does not need to live with you for you to claim head of household status. Any other relative must have lived with you for at least half of the tax year.
Medical Expense Deduction
You can deduct the money you paid to cover your loved one’s unreimbursed medical and dental costs if the qualified medical expenses of everyone claimed on your taxes total more than 7.5 percent of your adjusted gross income and if your total itemized deductions are more than your standard deduction.
These include: artificial teeth; copayments and deductibles; eyeglasses and hearing aids; home and vehicle modifications needed for safety or mobility; insulin; oxygen and oxygen equipment; personal protective equipment; prescription; professional health aides for respite care; and wheelchairs, including maintenance
Tax Credit for Paid Care
The Child and Dependent Care Credit is based on money you spend to have someone else care for that person. For the 2024 tax year, you can claim a portion of up to $3,000 in caregiving costs for one qualifying person and up to $6,000 for two or more. This tax credit does not require that your loved one qualify as your dependent in certain circumstances. There are rules for when you can claim this credit.
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IRS Tool Can Help You Determine Your Eligibility
The IRS has an interactive tool to determine if you are qualified to receive tax credits and deductions. You will need:
1.Your filing status
2.Whether you can claim the person as a dependent
3.The person's date of birth
It takes about 10 minutes to complete. Click on the button below and select the "Begin" blue box on the IRS webpage.
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Financial Support for Caregivers Is Now a Priority for Federal Elected Officials
One in three Caregivers dips into their personal savings, like bank accounts, to cover costs, and 12 percent take out a loan or borrow from family or friends. Others run up credit card debt to meet the financial demands of caregiving.
Congress is listening now. The Credit for Caring legislation was introduced with bi-partison support on March 11, 2025. Under the Act, qualifying family caregivers would be eligible for a refundable tax credit of up to $5,000. This credit would cover 30% of qualified expenses that exceed $2,000, offering tangible financial support to those who often bear significant out-of-pocket costs associated with caregiving. The legislation is supported by the AARP, Alzheimer's Association, Alzheimer's Impact Movement, and the Autism Society.
Recently, the U.S. House and Senate passed a stop-gap funding resolution - Continuing Resolution - that will level fund the government (no immediate cuts to Medicare, Medicaid and Social Security) until September 30, 2025. Groups are organized and fighting for this Act to become a part of the federal budget for the upcoming tax year.
| Area Agency on Aging Cost Cutting Programs and Services | |
Benefits CheckUp
Our Agency partners with the National Council on Aging on the Benefits CheckUp tool connecting older adults, people with disabilities and your loved one with benefits programs that can help pay for health care, medicine, food, utilities, and more.
You can check eligibility for your loved one by entering your zipcode, and the tool generates a list of choices, contact information and the process to apply in the following categories:
Health Care & Medication
Food & Nutrition
Housing & Utilities
Aging In Place
Transportation
Income
Disability Services
Long Term Care
Discounts & Activities
Tax Help
Crisis, Legal, & General Help
Veterans Programs
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One Door Alabama
The Aging and Disability Resource Center
Housed within our Agency, the Aging Disability Resource Center (ADRC) is the first place to go with aging, disability, and caregiver questions. This program - one door, or access point - provides free information, counseling, and access to programs and services provided by the AAA, Alabama Department of Senior Services, state agencies, and federal programs.
Make one call and our trained benefits counselors will do an assessment for all eligible services your loved may qualified for.
Hours
Monday - Friday, 8:oo a.m. - to 4:30 p.m.
Call
251-706-4680
Email
aginginfo@sarpc.org
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Help for Grandfamilies During the Opioid Crisis
A new program helps Older Relative Caregivers raising minor children due to substance abuse. Caregivers can receive financial assistance with expenses directly related to children’s care needs.
Excerpt from article by South Alabama Pediatrician Dr. Martha Raulerson
Several counties in South Alabama are participating in a pilot project to support the needs of Grandfamilies. Currently, funds up to $500 per child are available.
“We have good news for children living with relatives other than their parents due to the opioid epidemic. Many families have been deeply affected by opioid abuse, with parents unable to care for their children due to active addiction, rehab, or incarceration. Grandparents, aunts and uncles, or other relatives have often had to step in and care for these children."
“In Alabama more than 65,000 children are being raised by relatives because of a parent’s drug addiction. Many of these children suffer neglect and abuse, and arrive in their new home traumatized, scared, and with challenging behaviors. Unfortunately, children living with relatives on a fixed income are often unable to afford many of the things that support wellbeing. These can include orthodontia, sports participation, a school prom, tutoring, summer camp, or a vacation trip – just to name a few. Their relatives may struggle with car repairs, putting food on the table, appropriate housing, and gas for needed travel."
To Apply for Benefits: South Alabama Area Agency on Aging: 251-706-4680 or aginginfo@sarpc.org.
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UPCOMING EVENTS
Older Relative Caregiver Resource Fair
Semmes Senior Center
April 21, 2025
10:00am - 12:00pm
Caregiver College
Fairhope First Baptist Church
May 1, 2025
9:30-2:00
See Support Group Listing Below
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FREE TAX PREPARATION PROGRAM - ESCAMBIA COUNTY | FREE TAX PREPARATION PROGRAM - BALDWIN COUNTY | | |
WHAT IS ALABAMA CARES?
Administered through the state, Alabama CARES provides support services to help families sustain efforts in caring for their loved one.
- INFORMATION for caregivers and the public on resources and services available within their communities.
- SUPPORT GROUPS establishing a mutual support system for caregivers to discuss their experiences and concerns.
- ASSISTANCE to family caregivers through short-term case management in gaining access to services and resources available to them within their communities.
- RESPITE SERVICES that offer temporary, substitute support to relieve family caregivers from their daily caregiving responsibilities. Due to limited funding, this service is available for family caregivers who have the greatest burden and highest need of relief.
- COUNSELING family caregiver education, and guidance that assist family caregivers in making decisions and solving problems related to their roles as caregivers.
- TRAINING family caregivers with instruction to improve their knowledge and skills related to caregiving.
- SUPPLEMENTAL SERVICES, available on a limited basis, are intended to complement the care family caregivers provide for their loved one.
The following are eligible to participate in support services. Caregivers: 60+ caring for persons diagnosed with Alzheimer’s/other dementias; 55+ (not parents) caring for children under 18; and older relatives 55+ (including parents) caring for adults 19-59 with disabilities.
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South Alabama Regional Planning Commission
Area Agency on Aging
110 Beauregard Street
Mobile, Alabama 36602
Aging and Disability Resource Center
251-706-4680 or aginginfo@sarpc.org
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